Ocean Bio-Chem, Inc. Reports Record Net Income of $2.4 Million, Approximately a 19% Increase From 2010
FORT LAUDERDALE, FL -- (Marketwire) -- 03/29/12 -- Ocean Bio-Chem, Inc. (NASDAQ: OBCI) today released financial results for 2011. The Company reported record net income for the year ended December 31, 2011 of approximately $2.4 million, compared to previous record net income of $2.0 million for 2010, an increase of approximately 19%. Basic and diluted earnings per share were also records of $0.30 per share and $0.28 per share respectively, compared to $0.26 per share basic and $0.24 diluted earnings per share respectively, for the year 2010. Record net sales, for the year ended December 31, 2011, were approximately $31.7 million compared to approximately $27.4 million for 2010, an increase of approximately $4.3 million or 16%.
(in thousands except per share & share data) Year Ended December 31, 2011 2010 -------------- -------------- Net Sales $ 31,681 $ 27,404 Net Income $ 2,393 $ 2,018 Earnings per Share - Basic $ 0.30 $ 0.26 Earnings per Share - Diluted $ 0.28 $ 0.24 Wt. Avg. Shares (basic) 7,953,329 7,789,699 Wt. Avg. Shares (fully-diluted) 8,395,347 8,443,797
Ocean Bio-Chem President and CEO Peter Dornau stated, "Ocean Bio-Chem, Inc. reported its third consecutive year of record net sales. For the year 2011, net sales increased to approximately $31.7 million a 16% increase, compared to 2010 sales. The compounded sales growth rate over the last three years was 13.4%. This double digit compounded growth rate demonstrates the success of the Company's products in its markets. We consider this track record exceptional considering the average growth rate of the economy during this period is in the 1%-2% range. The Company has continued to have success beyond its core marine markets. In 2011 the Company recorded increased sales in the automotive, outdoor power equipment, 'big box' hardware stores, recreational sports and motorcycle markets. We have also increased sales to marine customers. As a result of higher sales, gross profit dollars also increased to record levels, totaling approximately $10.7 million. The gross profit percent should increase, as the volume through our Kinpak manufacturing subsidiary increases. During 2011, the Company increased its investment in advertising and customer promotions. For the year the Company increased advertising and promotion expenditures to approximately $2.0 million compared to approximately $1.6 million, an increase of $400 thousand or 20%. The increased advertising was most media types, including television, radio, social media, magazines, newspapers and consumer promotion programs. The advertising has contributed to building stronger brand awareness in addition to increased product recognition, which in turn has helped the continued growth in sales. Selling and administrative expense increases were primarily related to sales volume increases including such expenses as sales commissions, and other selling type expenses including trade shows and related travel expenses. Administrative expense remained under control."
Peter Dornau continued, "The Company's Balance Sheet continued to strengthen. The Current Assets increased to approximately $13.8 million from approximately $11.0 million. At the same time total current liabilities decreased $300 thousand. As a result, the current ratio increased to 3.8: 1 from 2.8: 1 in the prior year. Also, long term debt decreased by approximately $600 thousand to $1.9 million. The Return on Equity for 2011 was approximately 17%."
Peter Dornau concluded, "In the fourth quarter 2011, the Company had incurred unusual costs (all expensed in the quarter), as part of the product formulation and packaging changes, for improved performance of the Odorstar (chlorine dioxide) products. Without these onetime costs the Company had a record sales, gross profit and net income for the fourth quarter. We believe these onetime charges to income will not reoccur in the future.
"For the first two months of 2012, the Company has seen some of its larger customers; slow purchases as they strategically manage lower inventory levels. However the lower inventory levels at these customers has not affected outbound sales or in stock levels of the company's products. We fully expect this condition to rectify itself in the second quarter, as spring (our prime selling season) appears to have arrived early. Also due to a warmer winter in the northern states, we had lower sales, into the recreation vehicle (snow mobile) market. On a positive note, we continue to have success in increasing sales to new market segments and many existing customers in the first quarter 2012. Management remains fully optimistic, that we will have another successful year in 2012, despite the slow start in the first quarter of 2012."
About Ocean Bio-Chem
Ocean Bio-Chem, Inc. manufactures and markets a full line of maintenance and care products for marine, automobile, motorcycle, power sports, outdoor power equipment, RV, agriculture, hardware, lawn & garden and OEMs. Products are sold under the Starbrite, StarTron, Sea Safe, Sta-Put, Extend-a-Brush and Nos Guard names, as well as private label brands. The Company trades publicly under NASDAQ Capital Markets, Ticker Symbol: OBCI. The Company's web sites are: www.oceanbiochem.com, www.Starbrite.com and www.Startron.com.
Certain statements contained in this Press Release including without limitation expectations as to future sales and operating results, constitute forward-looking statements. For this purpose, any statements contained in this report that are not statements of historical fact may be deemed forward-looking statements. Without limiting the generality of the foregoing, words such as "believe," "may," "will," "expect," "anticipate," "intend," "could" including the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that may affect these results include, but are not limited to, the highly competitive nature of our industry, reliance on certain key customers, changes in consumer demand for marine, recreational vehicle and automotive products, advertising and promotional efforts, exposure to market risks for changes in interest rates and in foreign exchange rates, and other factors.